New York-based Subversive Capital Acquisition Corp., a special purpose acquisition company, said it has acquired two California cannabis companies and hired rapper and producer Shawn “Jay-Z” Carter to foster social equity in the industry. The company is purchasing marijuana brand Caliva and cannabis investment firm and producer Left Coast Ventures. The purchases will create a new parent company, TPCO Holding Corp., and include $36.5 million worth of equity commitments from new and existing shareholders, according to a news release. Terms of the transaction, which is expected to close in January 2021, were not disclosed. The merger of the two California companies creates a vertically integrated platform that includes cultivation, manufacturing, brands, retail, and delivery allowing TPCO to control its supply chain. According to the news release, Caliva and Left Coast Ventures expect combined pro forma revenues of $185 million in 2020 and $334 million in 2021.
SpeedWeed, 11/25/2020 03:25:02